Should I report medical debt even if I did not pay it off this year?

No.  You can only enter medical expenses that you actually paid in 2023, not outstanding amounts that have not yet been paid.

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2023—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

2023 STANDARD DEDUCTION AMOUNTS

SINGLE $13,850  (65 or older/legally blind + $1850)

MARRIED FILING SEPARATELY $13,850  (65 or older/legally blind + $1500)

MARRIED FILING JOINTLY $27,700  (65+/legally blind) )  + $1500 per spouse

HEAD OF HOUSEHOLD  $20,800 (65 or older/blind)  + $1850)

No. Medical debt isn't reported on your tax return. You can only claim medical payments you make out-of-pocket as Medical expenses.

When you pay down this medical debt, the payments can be claimed as Medical expenses.

You can claim all medical and dental bills, prescription drugs and health insurance premiums paid out-of-pocket as Medical Expenses in Schedule A - Itemized Deductions

For tax year 2023, Medical Expenses are subject to the 7.5% rule and you can only claim the excess over 7.5% of your Adjusted Gross Income.

Please note that Itemized Deductions will only benefit your taxes when they exceed your standard deduction.

For tax year 2023, standard deductions are:

• $27,700 for married couples whose filing status is “married filing jointly” and surviving spouses;
• $13,850 for singles and married couples whose filing status is “married filing separately”; and
• $20,800 for taxpayers whose filing status is “head of household.”

The additional standard deduction for a blind taxpayer—i.e. a taxpayer whose vision is less than 20/200— and for a taxpayer who is age 65 or older at the end of the year is for each instance:

• $1,500 for married individuals; and
• $1,850 for singles and heads of household.

In TurboTax Online, you can enter Medical expenses by following these steps:

1. Open your tax return
2. Click on the down arrow on the right of Federal in the left-hand column, then on Deductions & Credits
3. Locate the section Medical and click on the arrow on the right 
4. Click Start next to Medical Expenses.